Good news from the crypto space! On Friday, Bitcoin manages the long awaited jump over the resistance at 7400 USD. Again and again the No.1 crypto currency failed at this mark in the past weeks. Meanwhile, the Altcoins are using the slipstream for their own price jumps. We take a look at the current situation and the possible reasons for the rising prices.
Strong timing: At the start of the weekend, the Bitcoin ignites the turbo and crosses the USD 7400 mark. At the time of this article the BTC price is at 7565 USD. An imminent attack on the 8000 USD hurdle is now quite realistic. However, after reaching the new monthly high, the resistance at 7700 USD is first moving into the bull’s sights. From a bearish perspective, the trend line at 7400 USD now forms the new support level.
Reasons for the recent bull run
Bitcoin has made an impressive comeback over the past 50 days. After the “digital gold” collapsed to an annual low of around USD 3600 on 12 March, the coronavirus pandemic cast its shadow over all markets. Wall Street was forced to suspend trading several times, the DAX was catapulted back to a 2016 level and the world rushed towards a tangible economic crisis. The high volatility enabled the crypto market to recover very quickly from the slump. Shortly afterwards, the major stock indices were also able to limit the damage. Many indicators point to an increasing correlation between crypto-space and traditional markets.
Halving and growing confidence
There are currently several reasons for a sustained bull run. In less than 3 weeks there will be an absolute “crypto highlight” with the 3rd Bitcoin Halving Event. In the run-up to the event, experts are arguing about whether the event has already been fed into the course. The Google search queries imply an increasing interest of investors and the falling inflation rate could further benefit the reputation as a “safe haven”. More and more people see the digital currency as a crisis-resistant store of value that can be transferred without difficulty.
Altcoins with strong performance
Most alternative assets start the weekend with substantial gains. Ethereum is moving straight towards the important USD 200 mark with a daily gain of a whopping 4% (current price: USD 187.90). The market cap remains at just under USD 20 billion. The strongest performance these days is being delivered by the Coins on positions 10-13, where Tezos (+ 13.5%), Chainlink (+ 4.9%), Stellar (+ 5.6%) and Cardano (+ 15.6%) are promising technologies. All of them are regarded as innovative pioneers in their sector. The race for the coveted top 10 place remains exciting.
Total market capitalization rising
Investors are pumping fresh capital into the crypto market these days. This behaviour can be seen in a rising market cap. At the moment, this is around USD 216 billion. Of this amount, 64% is in Bitcoin investments, all Altcoins share a market share of “only” 36%.